Mar. 6, 2012 (China Knowledge) - Industrial Bank Co Ltd<601166>, a Fujian Province-based bank partly owned by HSBC Holdings Plc<0005>, today said it will launch its initial public offering in Hong Kong with fundraising of not more RMB 26.38 billion.

The Shanghai-listed lender intends to issue up to 2.07 billion shares to four selected investors, of which PICC Asset Management Co Ltd will subscribe 1.38 billion shares in the IPO, accounting for 66.8% of the to-be-issued shares.

The subscriber expects to hold a 10.7% stake in the issuer via the IPO, said a person familiar with the matter, adding that the issuer's largest shareholder is Fujian Provincial Department of Finance with a 21.03% stake.

China National Tobacco Corp will subscribe 19.7% or 409 million shares. The remaining two investors consist of Beijing Infrastructure Investment Co Ltd and Shanghai Zhengyang International Business Co Ltd.

The issue price in the IPO was set at RMB 12.73 apiece. Proceeds from the IPO will be all used to replenish working capital, said the issuer.

At the end of last September, Industrial Bank's capital adequacy ratio and core capital adequacy ratio was 10.92% and 8.08%, respectively, both nearly reaching the figures required by China Banking Regulatory Commission.